Cenovus Energy Inc.’
s top executive said the company doesn’t plan to increase its takeover offer for oilsands producer
Meg Energy Corp.
, despite a higher rival offer from
Strathcona Resources Ltd.
“We’re paying at the highest end of the range. And you know, we are in a world where we think we’ve got the only viable bid going forward,” chief executive Jon McKenzie said in an interview with Bloomberg News.
“We are closing the door” on making a higher bid, he said.
Cenovus announced a cash-and-stock offer for Meg last month that currently values the target at about US$28 a share. But Calgary-based Meg is trading well above that, closing at US$29.12 in Toronto on Tuesday, after the company received an enhanced all-stock offer from Strathcona on Monday.
Strathcona’s bid “doesn’t have any credibility to it,” McKenzie said, arguing that the company’s controlling shareholder, Adam Waterous, is using overvalued stock to try to capture what is effectively a majority stake in Meg’s prized oilsands assets in northeastern Alberta.
Bloomberg.com
Cenovus CEO says he’s ‘closing the door’ on higher bid for Meg
2025-09-10 16:15:48
